The Nature of Electronic Commerce Group 2

THE NATURE OF ELECTRONIC
COMMERCE
• BANTOC,AIRA M.
• BESA,LARA YSABEL
• CATAJAY,CRISTENE JAYE V.
• FRUGAL,CLARISE ANNE
• REBOSQUILLO,MARLON
• TALADTAD,CARMELA
• ZABALA,DANICA
NATURE AND CONTEXT OF E-COMMERCE
•ELECTRONIC COMMERCE
-Also known as “E-Commerce”,is the business of buying and
selling goods and services that work using the internet or over
electronic frameworks.
-ECommerce is based on transactions electronically.
 Involves many different types of technologies such as:
• Mobile
• Supply Chain Management
• Point of Sale (POS)
• Electronic Data Interchange (EDI)
• Online transaction Processing (OLTP)
NATURE AND CONTEXT OF E-COMMERCE
Contextual e-commerce
— implies an integrated approach
The concept of contextual commerce spread far beyond the advertising. It also implies providing
contextual customer experience: Making buying seamless inside of environments that consumers
regularly use.
•|| E-COMMERCE ECOSYSTEM ||•
•ONLINE TRAVEL ,TICKETING ETC
•ONLINE RETAIL
•ONLINE MARKET PLACE
•ONLINE DEALS
•ONLINE PORTAL CLASSIFIED
•|| TYPES OF E-COMMERCE || •

B2B —Business to Business
B2C —Business to Consumer
C2C —Consumer to Consumer
Categories of E-commerce
Five general E-Commerce categories:
Business to Consumer Businesses sell products or services to individual
consumers
Business to Business Businesses sell products or services to other businesses
Business Processes Support selling and purchasing activities
Consumer to Consumer Participants in an online marketplace can buy and sell

goods to each other
Business to Government Businesses sell goods or services to government and

agencies.
FRAMEWORK OF ECOMMERCE
 The EC Framework, Classification, and Content
• Intranet
An internal corporate or government network that uses
Internet tools, such as Web browsers, and Internet
protocols
• Extranet
A network that uses the Internet to link multiple intranets
FRAMEWORK OF ECOMMERCE
The EC Framework, Classification, and Content
• EC applications are supported by infrastructure
and by these five support areas:
– People
– Public policy
– Marketing and advertisement
– Support services
– Business partnerships
1. Business-to-consumer (B2C)
2. E-tailing
3. Business-to-business-to-consumer (B2B2C)
4. Consumer-to-business (C2B)
5. Mobile commerce (m-commerce)
6. Location-based commerce (l-commerce)
7. Intrabusiness EC
8. Business-to-employees (B2E)
9. Collaborative commerce (c-commerce)
10. Consumer-to-consumer (C2C)
11. Peer-to-peer (P2P)
12. E-learning
13. E-government
• The Interdisciplinary Nature of EC

-The Google Revolution
-EC Failures
-EC Successes
The Future of EC
- Web 2.0
Dimension of E-Commerce
 Traditional Commerce
- The process of buying and selling goods in direct form, this
began with the start of human civilization, namely the
barter system.
 Pure E-Commerce
- Pure E-Commerce is when everything happens on the
internet. Products, transaction are all digital. Also, the
delivery.
 Partial E-Commerce
- Is when a company will sell a good through the internet but
the fulfillment of the good will needed to take place in the
real world.
The Electronic Market (e-marketplace)
• An online marketplace where buyers and sellers meet
to exchange goods, services, money, or information.
 2 TYPES OF MARKET
• A vertical market is one in which all of your
customers are in one particular industry, regardless of
where in the food chain they are.
• A horizontal market is one in which all of your
customers use your product to do the same thing,
regardless of what industry they are in.

Private e-marketplace
Online markets owned by a single
company;may be either sell-side and/or buy-
side e-marketplaces
Public E-marketplace
• B2B marketplaces, usually owned and/or
managed by an independent third party.
• They are open to the public and are
regulated by the government or the
exchange’s owners.
• They include many sellers and many buyers.
• They also are known as exchanges
ELECTRONIC BUSINESS
OPTIONS
CONSTEXTUALIZING E-BUSINESS
•UBIQUITY Refers to the quality of being available everywhere .
•GLOBAL CONNECT Ecommerce effortlessly goes beyond traditional, cultural

and national boundaries and allows companies to access
customers across the globe .
•UNIVERSAL STANDARDS The technical standards of the internet and therefore of

conducting ecommerce ,are shared by all of the nations in
the world.
•INTERACTIVITY Ecommerce technologies facilitate two-way

communication between the merchant and the
consumers using chat ,SMS,Viber Email ,Voicemail over
internet protocol (VIOP)
•INFORMATION DENSITY Ecommerce comprises a wide source of information

,which is available to all the stakeholders .
•PERSONALIZATION CUSTOMIZATION Ecommerce technologies allow merchants to target their

marketing messages to a people based on their interests
and past purchase history.
•SOCIAL NETWORKING Ecommerce players have partnered with social media

networking sites to allow users to share content and to
deploy the company eMarketings systems.
E-COMMERCE -ADVANTAGES AND DISADVANTAGES
ADVANTAGES DISADVANTAGES
Provide flexibility to the customer to buy product 24/7 No one can buy during a site crash.
(browsing , buying and selling )
Less Store Set-up Cost and Quick ROI Lack of trust in e-commerce ,e-retailer’s website leads
to unsustainable environment.
No geographic limitations Susceptible to cyber attacks

Low operational costs due to low overheads Low barriers to entry
Wide range of products and services or can sell Customer data susceptible to risk of theft.
Internationally .
Wide choice of payments options (g-cash,paymaya, Highly dependent on technology and needs to be
local banking cards , credit and debit cards ,vouchers continuously updated with the latest web.
etc.)
Low operational costs allowing company to earn on E-commerce Is Highly Competitive .

higher margins.
Helps consumers compares different products. Late Delivery .

COMPONENTS OF E BUSINESS
• WHAT IS COMPONENTS OF E BUSINESS?
 The core components of e-business are
information, communication, and transaction.
Business partners use digital networks.
BACK END and FRONT END
• Front End- Operations that deal directly with the
customer.
Includes Marketing, Sales, and Customer support
services.
• Back End- Operations that include all of the internal
support activities that don’t require face to face
interaction with the customer.
Includes Accounting, Distribution and Delivery, Human
Resources, Inventory and Manufacturing.
Types of E-business Models
BUSINESS MODEL
A method of doing business by which a company can generate revenue to sustain itself.
EC Business Models
• Revenue model
• value proposition
• tendering (bidding) system
• name-your-own-price model
• affiliate marketing
• viral marketing
• SMEs
• group purchasing
• e-co-ops
• customization
• THE E-BUSINESS TRANSACTION INDEX (T.I)
Transaction-based indices refer to a mode of
monitoring the performance of the commercial
real estate market. Such indices are rare since the
acquisition of property is a personal endeavor.
Appraisal-based indices are the most common
form of indices since, to some extent,investors are
obliged to revalue assets they hold. Consequently,
the appraisal-based index gives lagged and
smoothed price estimates in the market.
Types of Transaction-based Indices
• Transactions-based indices can be categorized into two: statistical and ad hoc.
The statistical type is known for optimizing with regard to econometric principles, which minimize
the error level close to zero. The statistical methods can regulate the differences in property
values and between durations. The ad hoc methods cannot optimize according to econometric
principles and cannot control the difference between property values nor the difference between
periods.
• Developing a Transaction-based Index

The easiest method of computing a transaction-based index is by taking the mean of all
accessible assets traded in a particular period. Taking the average means that there is both the
difference in property quality and the market movements in the number of sales in a particular
period. The average, therefore, puts into perspective the market value and the fluctuations in
the value of assets being sold.
• Pros of a Transaction-based Index

There’s no doubt that appraisal-based indices are the most popular form of indices used to
evaluate the performance of the real estate industry. However, transaction-based indices better
express the real estate industry’s performance. It refers to real-time prices, as opposed to
valuation-based indices, which refer to past prices since valuation is done in the past.
.
Again, valuation prices are partially
based on the comparison of
recently sold properties. The
challenge occurs in obtaining recent
transactions on acquisitions.
Properties are sold infrequently
and silently from the public eye.
Appraisal-based indices tend to
draw criticisms due to lagging
transaction prices, which are
developed from previous
valuations.
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THE NATURE OF ELECTRONIC

•|| TYPES OF E-COMMERCE || •

Business to Business Businesses sell products or services to other businesses

Business Processes Support selling and purchasing activities

Consumer to Consumer Participants in an online marketplace can buy and sell

Business to Government Businesses sell goods or services to government and

• The Interdisciplinary Nature of EC

•GLOBAL CONNECT Ecommerce effortlessly goes beyond traditional, cultural

•UNIVERSAL STANDARDS The technical standards of the internet and therefore of

•INTERACTIVITY Ecommerce technologies facilitate two-way

•INFORMATION DENSITY Ecommerce comprises a wide source of information

•PERSONALIZATION CUSTOMIZATION Ecommerce technologies allow merchants to target their

•SOCIAL NETWORKING Ecommerce players have partnered with social media

No geographic limitations Susceptible to cyber attacks

Low operational costs allowing company to earn on E-commerce Is Highly Competitive .

Helps consumers compares different products. Late Delivery .

• Developing a Transaction-based Index

• Pros of a Transaction-based Index

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